Looking for 2019 real estate investment trends? Real estate has become a common investment vehicle, with plenty of opportunities for making a profit. But, buying and owning real estate can be challenging if you don’t know what you’re doing or if you try to go it alone. But that doesn’t mean it should be avoided.
When approached correctly, real estate can be a lucrative and reliable way to generate substantial returns. Here are the top 6 real estate investment trends that you can expect in 2019.
2019 Real Estate Investment Trends
1. Decreased Growth Will Lead to a New Game of Numbers
Tapered growth implies a more challenging setting, and investment analysts predict a lag on various fronts. The population is continuously growing, the labor force is losing conviction, and the productivity numbers in the economy are showing very little improvement. The average GDP growth is only projected at 1.9% in 2018-19, and the real estate activity will most likely reduce as well. This reduction means that identifying new opportunities such as building new office spaces, replacing ancient buildings, spotting growing markets and capitalizing on them will be more difficult. Be sure you work with the experts to identify the right opportunities.
2. Technology Will Act as a Backbone for the Real Estate Market
Technology has always been after real estate, an industry that accounts for 13% of the GDP in the US. 2019 will witness the collaboration of tech companies and real estate firms. Tech startups will begin to capture the real estate market. You’ll be surprised to know that investment of tech firms in real estate closed at $5.2 billion by 2018 end. New online home selling platforms keep coming up, so try to modify the traditional home buying and selling ecosystem.
3. Artificial Intelligence Will Continue to Boom
Do you think the much-hyped Artificial Intelligence will enter the real estate space? Well, some tech startups have integrated Artificial Intelligence into real estate, especially in emerging products such as building design, management, and organization. Many smart buildings such as The Edge and companies such as the shared office space giant WeWork are using Artificial Intelligence to analyze user behavior, redesign their workspaces, and do a lot more. Artificial Intelligence comes with several benefits for the real estate industry such as safety, security, and building efficiency.
4. The Focus on Sustainability Will Be Renewed
Due to the increased attention toward climate change, the focus on sustainability in the construction and building space will be renewed. More and more realtors will switch to green practices and focus on the impact of their actions on the environment.
5. Builders Will Compete for World-Class Amenities
In the competitive real estate space, builders and landlords are competing with each other to add world-class amenities to apartments to draw potential customers. Gym memberships and access to the rooftop don’t cut the deal anymore. These days, tenants look for modern kitchens, community gardens, pet parks, etc. These demands have resulted in the rise of convenience services for tenants.
6. Affordability Will Continue to Be a Challenge
Research shows that the U.S. faces a massive housing crisis every year in small towns as well as large cities. 50% of the renters pay almost 30% of their income on rental accommodation. You’ll be stunned to know that approximately 12 million Americans spend over 50% of their earnings on their accommodation, and rising demand for homes and increasing mortgage rates have brought down the affordability for homes by close to 15%. Moreover, the country needs more homes to accommodate the people looking for rental homes. It is estimated that the U.S. will require over 4.6 million rental homes by 2030.